Coca Cola : Reconciliation of Q2 2019 Non-GAAP Financial Measures for Earnings Conference Call

THE COCA-COLA COMPANY AND SUBSIDIARIES

Reconciliation of GAAP and Non-GAAP Financial Measures

(UNAUDITED)

Net Operating Revenues:

	Six Months Ended
	June 28, 2019
% Change - Reported Net Operating Revenues (GAAP)	5
% Currency Impact	(6)
% Change - Currency Neutral (Non-GAAP)	12
% Acquisitions, Divestitures and Structural Items	6
% Change - Organic Revenues (Non-GAAP)	6
% Estimated Impact of Timing of Concentrate Shipments	(1)
% Change - Underlying Top-Line Performance (Non-GAAP)	5

Note: Numbers may not add due to rounding.

1

THE COCA-COLA COMPANY AND SUBSIDIARIES Reconciliation of GAAP and Non-GAAP Financial Measures

(UNAUDITED)

Gross Margin:

	Three Months Ended	Three Months Ended	Basis Point
	June 28, 2019	June 29, 2018	Growth (Decline)
Reported Gross Margin (GAAP)	60.78%	62.38%	(160)
Items Impacting Comparability	0.06%	0.34%
Comparable Gross Margin (Non-GAAP)	60.72%	62.04%	(132)
Comparable Currency Impact (Non-GAAP)	(0.66%)	0.00%
Comparable Currency Neutral Gross Margin (Non-GAAP)	61.38%	62.04%	(66)
Impact of Acquisitions and Structural Items on Comparable
Currency Neutral Gross Margin (Non-GAAP)	(1.59%)	(0.76%)
Underlying Gross Margin (Non-GAAP)	62.97%	62.80%	17

	Six Months Ended	Six Months Ended	Basis Point
	June 28, 2019	June 29, 2018	Growth (Decline)
Reported Gross Margin (GAAP)	61.02%	62.64%	(162)
Items Impacting Comparability (Non-GAAP)	0.26%	0.38%
Comparable Gross Margin (Non-GAAP)	60.76%	62.26%	(150)
Comparable Currency Impact (Non-GAAP)	(0.73%)	0.00%
Comparable Currency Neutral Gross Margin (Non-GAAP)	61.49%	62.26%	(77)
Impact of Acquisitions and Structural Items on Comparable
Currency Neutral Gross Margin (Non-GAAP)	(1.62%)	(0.80%)
Underlying Gross Margin (Non-GAAP)	63.11%	63.06%	5

2

THE COCA-COLA COMPANY AND SUBSIDIARIES

Reconciliation of GAAP and Non-GAAP Financial Measures

(UNAUDITED)

Operating Margin:

	Three Months Ended	Three Months Ended	Basis Point
	June 28, 2019	June 29, 2018	Growth (Decline)
Reported Operating Margin (GAAP)	29.89%	29.36%	53
Items Impacting Comparability	(0.43%)	(1.21%)
Comparable Operating Margin (Non-GAAP)	30.32%	30.57%	(25)
Comparable Currency Impact (Non-GAAP)	(0.72%)	0.00%
Comparable Currency Neutral Operating Margin (Non-GAAP)	31.04%	30.57%	47
Impact of Acquisitions and Structural Items on Comparable
Currency Neutral Operating Margin (Non-GAAP)	(2.21%)	(1.09%)
Underlying Operating Margin (Non-GAAP)	33.25%	31.66%	159

	Six Months Ended	Six Months Ended	Basis Point
	June 28, 2019	June 29, 2018	Growth (Decline)
Reported Operating Margin (GAAP)	29.01%	26.60%	241
Items Impacting Comparability (Non-GAAP)	(0.34%)	(3.06%)
Comparable Operating Margin (Non-GAAP)	29.35%	29.66%	(31)
Comparable Currency Impact (Non-GAAP)	(0.87%)	0.00%
Comparable Currency Neutral Operating Margin (Non-GAAP)	30.22%	29.66%	56
Impact of Acquisitions and Structural Items on Comparable
Currency Neutral Operating Margin (Non-GAAP)	(2.49%)	(1.25%)
Underlying Operating Margin (Non-GAAP)	32.71%	30.91%	180

3